The Futuregrowth Community Property Composite is a portfolio specialising in the acquisition of new and existing shopping centres which cater to the needs of underserviced communities throughout South Africa and forms part of Futuregrowth’s suite of developmental investments.
The benchmark is CPI + 4%.
The Composite aims to outperform the CPI by 4% per annum before the deduction of taxes and fees and with income reinvested over a rolling 3-year period. The Composite seeks to provide investors with a low cost, high value property investment that focuses on emerging market retail property growth in underserviced rural communities and high density urban centres.
The Composite has purchased and developed 31 shopping centres located in rural and township areas countrywide. These centres are located in 7 of the 9 provinces, providing retail services and products to a primary target market of approximately 10 million people.
The centres deliver retail services to low- to middle-income groups. They vary in size between 5 000m² and 50 000m² and are typically tenanted by supermarkets, clothing, banking and furniture retailers. The national tenants occupying space across all shopping centres average 86%.
PERFORMANCE at 28 February 2017
While South Africa’s listed property sector returned 10.96% for the 12-month period ending February 2017, the Community Property Composite returned 24.28% for the same 12-month period with the benchmark CPI+4% returning 10.59%.
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The Composite aims to provide investors with a vehicle that offers service and consumer facilities to local communities, facilitates infrastructure and delivers on a variety of social impact requirements.
Each centre is a catalyst for the development of:
- Transport infrastructure (taxi ranks and bus terminals) and infrastructure such as electricity, water and sewerage services which benefit the community;
- Vehicular service stations, additional shopping centres and municipal services; and
- Municipal infrastructure through increased rate payments by the new shopping centre.